The U.S. Treasury Department has imposed sanctions on what it calls the Iranian military’s shadow banking network.
The State Department said the vast network extends to 50 individuals and companies in Hong Kong, the United Arab Emirates and the Marshall Islands, and is used by Iran’s Ministry of Defense and military, as well as the Islamic Revolutionary Guard Corps.
Ministry of Finance announcementThe network gained unauthorized access to the international financial system, enabling it to “process billions of dollars’ worth of funds since 2020.”
The statement said these individuals and entities are involved in the sale of Iranian oil and petrochemical products, using the funds to buy weapons, some of which has gone to Russia for the Ukraine war, and funding groups such as the Houthi rebels in Yemen, who have created a crisis in Red Sea shipping lanes during the Gaza war.
Deputy Treasury Secretary Wally Adeyemo said in a statement that the US has taken action against the shadow banking network, as well as “hundreds of other targets” linked to Iranian activity since Biden took office.
“We will continue to pursue those who seek to fund terrorist activities that destabilize Iran,” Adeyemo said. “We will work with our allies, partners, and the global financial community to heighten our vigilance against financial activity in support of terrorism.”
The Treasury Department said Iran’s Ministry of Defense is responsible for the development, production and financing of all defense activities, including weapons manufacturing.
In March 2023, the ministry took action against a group of dozens of entities operating as part of Iran’s shadow banking network.
The Treasury Department said the shadow banking network enabled certain Iranian entities to access the international financial system by setting up shell companies in the United Arab Emirates and Hong Kong to launder funds “into clean foreign currency.”
Seyed Mohammad Mohanna Najibi is an Iranian-Turkish money exchanger who controls 27 of the sanctioned companies. Others on the latest sanctions list are Assadullah Seifi, Ramin Jalalian and Siavash Nourian.
